environmental protection order

Sears Canada to sell two distribution centres

Friday, November 13, 2015

Sears Canada has updated its portfolio with three new transactions in an effort to increase the customer experience and revitalize its core retail business back to an iconic position.

“We have substantial non-core assets, and there continue to be numerous opportunities for the company to be more efficient and creative with its asset base,” said Brandon G. Stranzl, executive chairman for Sears Canada Inc. “We will continue to be opportunistic in building surplus capital by monetizing these assets, including parts of our non-core real-estate portfolio.

An agreement is set with Concord Pacific Real Estate Developments Ltd., for the development of certain lands. In addition, Sears Canada has agreed to sell a distribution centre for $8.5 million, a deal expected to close by the end of 2015.

The company has also entered into an agreement with Tamworth Properties Inc, an affiliate of Metrus Properties, for the sale and leaseback of its distribution centre in Vaughan, Ontario, for $100 million. That deal is expected to close at the beginning of 2016. The company will lease back the facility and continue operating the centre with no resulting staffing reduction or disruption of service.

“We will evaluate all opportunities to optimize our retail and logistics footprint, including additional shop-in-shop concepts, rationalization of store and distribution centre space, and subleasing or subdividing stores,” added Stranzl. “Our store network has enormous value as a distribution channel to reach Canadian consumers.”

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